It’s all in your mind: insights from investment psychology and behavioural finance

Time: 8.30am registration & breakfast, 9am presentation start

Presenter: Chris Marshall from Dragon Investment Managers

Overview of presentation

For too long traditional finance theory has purported that individuals have no difficulty in making the best decisions for themselves, do not get confused and can process unlimited amounts of data with super-hero-like qualities.

While incorrect, this leads to several core assumptions that; the presentation of data does not affect decision outcomes, emotions play little or no role in choice, and that overall, the market is made up of rational participants. This is however not what happens in the real world. As advisors will know, clients stick with poor investments for irrational reasons, refuse to change providers because that’s who they’ve always been with, and constantly make decisions that are not in their best interests.

With such a gap between real-world observations and traditional finance theory, behavioural finance has taken a cognitive psychology approach to the decision making process, seeking to understand the biases and heuristics that individual’s employ when making financial decisions in the real world.

Through a growing body of research over the past 40 years, and Chris’ latest research in Behavioural Finance, this short seminar will provide financial professionals with an understanding of the common biases and heuristics that they’ll come across on a day-to-day basis, as wellas how these can be overcome to achieve better client outcomes.

About Chris

Full details of the speaker will be published shortly.